How to start a post-retirement home-based business

Most retirees want a low-cost, home-based business they can run part time so they can still enjoy their leisure and work with less stress, according to AARP Bulletin financial columnist Jane Bryant Quinn.
Quinn gives the following advice on the best way to get started on that small business:

Find the right idea: Start by writing down lots of ideas, no matter how far-out. Test them against your interests and abilities, then winnow them down.

Do research and develop a business plan: Who are your customers? What should you charge? How much money will you have to invest, and when might you start to make a profit? are just some of questions you need to answer

Get educated: Go to a local community college or the business school at a university and take a course on how to start and run a small business. You’ll learn things from legal requirements to sales taxes and bookkeeping. Having others in the class to talk to and brainstorm with can be useful.

Set it up: Be sure to get a separate business bank account and phone line, and set up a simple website where customers can find you.

Write It Off: You can write off your direct business expenses against your business and personal income, which gives start-ups a tax break

If you use a portion of your home exclusively as an office, you can also deduct a percentage of your home upkeep costs, such as utilities and insurance. To remain a legitimate operation, not just a hobby, you’ll need to make money in three of your first five years, according to IRS rules. You might get a grace period, however, if it’s clear that you’re really working at it.

Have A Plan B: What will you do if the business doesn’t work? You can probably afford to lose a small investment, but don’t endanger your home or wipe out your 401(k). Always look ahead to what you’ll be doing the rest of your life.

Some small businesses that you can start for under $5,000